If an expenditure was inadvertently charged to the General Fund instead of the appropriate Special Revenue Fund, what effect would the correction of this error later in the same fiscal year have on the General Fund?

Question

Quizplus · Accepted Answer

If the expenditure was charged to the wrong fund, correcting it implies that the expenditure would be transferred from the General Fund to the Special Revenue Fund. This would result in a decrease in the General Fund's expenditures because the expenditure would no longer be recorded in the General Fund. The change in expenditures has no relationship with the revenue, nor will it directly impact the fund balance since the expenditure would be transferred from one fund to another. Therefore, option C is the best choice.

If an Expenditure Was Inadvertently Charged to the General Fund